Birmingham area jobless rate falls to 8.8%

The jobless rate in the Birmingham-Hoover metro area fell to a nearly two-year low of 8.8 percent in September, down from 8.9 percent a month earlier.

It was the fourth straight monthly decline for the Birmingham area since June, when the unemployment rate was at 10 percent. The September rate for metro Birmingham was down from 10.2 percent a year earlier.

Alabama's unemployment rate fell from 9.1 percent to 8.9 percent in September, the fifth straight monthly decline, according to data released by the Alabama Department of Industrial Relations. Both the Alabama and Birmingham jobless rates are at their lowest levels since February 2009.

It marked a continuation of a dramatic turnaround of the Alabama and metro Birmingham labor markets this year. The state jobless rate hit a 26-year high of 11.1 percent in January and was still at 11 percent in April. Birmingham's jobless rate hit a 26-year high of 11 percent in January.

"Alabama not only has an unemployment rate that is lower than the national rate, but our unemployment rate is falling faster than any other state," Gov. Bob Riley said in a statement. "In just five months, unemployment in Alabama has fallen by 2.1 percentage points. This sharp decline is a positive sign our economy is getting back on track and Alabama is headed in the right direction."

The national unemployment rate was 9.6 percent, unchanged from August and down from 9.8 percent in September 2009.

Alabama's unemployment rate was 10.7 percent a year ago. The state's rapid decline in unemployment mirrors what is happening locally in Alabama's cities. Five of Alabama's metropolitan areas rank in the top 10 nationally for fastest declining unemployment rates over the past year, according to the Bureau of Labor Statistics.

Mike Coffey, who heads a career assistance ministry at Vestavia Hills United Methodist Church, said the unemployment rate decline is a cause for celebration. But he said far too many people remain jobless as many businesses remain hesitant to hire despite the improving economy.

"The fact is that the unemployment rate amongst minorities and other segments is many times what these numbers show," Coffey said. "A real issue is the under employed who have taken jobs well below previous earnings. The divide between the haves and the have-nots is becoming greater and we are accepting that."

Leadership consultant Gayle Lantz, who helped found the Career Assistance Network of Birmingham last year, concurred with Coffey, saying the group continues to see demand for its efforts to work with churches and organizations striving to support those who are out of work.

"Although the unemployment rate is declining, there are still many people who seek support and strategies for securing a job or making a career change," said Lantz, president of WorkMatters.

Tom Surtees, director of the Alabama Department of Industrial Relations, said the number of new claimants for unemployment insurance is falling as well. "Our first-time claims are at the lowest point in two ears, and our benefit payments are at the lowest we've seen this year," he said.

Every county in Alabama except one (Monroe County) has recorded an increase in employment over the 12-month period since September 2009. Overall employment in Alabama rose by 17,126 in September and was up by 61,135 over the past year.

Riley said Alabama must remain diligent in its efforts to bring new companies to Alabama and help existing industries expand. Last week, the governor was in Germany courting several automotive suppliers. He said next week will bring more good news on the jobs front.

"We've got a big announcement next week," he said. "We're working to get Alabama's unemployment rate back down to about 3 percent, which is where it was before the recession hit. It will take a while, but we'll get there."

Initial claims for unemployment continued to drop, totaling 23,770 in September, nearly 5,000 fewer than a year earlier, state figures show. Unemployment benefit payments were $31.55 million in September, far below the monthly high of $52.23 million earlier this year when the jobless rate was at a level not seen since 1984.

Wage and salary employment increased 3,800 over the month with the majority of the gains coming from seasonal education jobs. Construction jobs continued to falter statewide, dropping by 1,800 from August to total 86,300 last month.

Shelby County had the lowest jobless rate in the state at 6.8 percent, unchanged from August, and Madison County at 7.1 percent, also was unchanged. The highest were Wilcox County at 20.9 percent, and Greene County at 19.8 percent.